CIM Group Sells Boston’s Motor Mart Garage to Related Beal After Stalled Condo Tower Plan

CIM Group has divested the prominent Motor Mart Garage at 201 Stuart Street in Boston's Back Bay to Related Beal, in partnership with Freeport Equity. The sale, reportedly for $89M, represents a substantial loss for CIM, which acquired the 1,037-space property for $162.5M in October 2016.

CIM Group had previously secured city approval in October 2019 for a 20-story, 306-unit residential tower on the site. However, the project remained stalled, with rising construction costs and a saturated condo market in Boston cited as contributing factors. Related Beal, the Boston arm of Related Companies, intends to continue operating the property as a parking garage and retail space while exploring future development opportunities.

This transaction highlights the challenges developers face in bringing large-scale projects to fruition, even with prior approvals, when market conditions and construction expenses shift significantly. For developers and investors, such sales underscore the importance of market timing and cost management in urban development.